Thursday, May 28, 2015

Open vs. Named Perils

When it comes to filing an insurance claim, it is important to know what is covered and what is not. The causes of loss covered in a property policy can be listed one of two ways: either on a "named peril" or an "open peril" basis. To fully understand your homeowners insurance at the Lake of the Ozarks, you'll need to understand the difference between the two.

Named Perils

A "named peril" insurance policy at Lake of the Ozarks will specifically list the causes of loss that are covered under that policy. This means that anything not listed is not covered. While some named peril policies may also include a list of example exclusions, do not mistake this as an exhaustive list. Exclusions will be determined based on whether they are listed as named perils or not. These types of policies include the "Basic Form" and "Broad Form" property policies. The Broad Form names all perils listed in the Basic form, plus a few more and therefore offers wider coverage. In this case, the burden of proof in submitting a claim is on the claimant, who must show that a loss was caused by a listed peril.

Open Perils

An "open peril" policy is just the opposite. In this type of policy, everything is covered except those perils listed as exclusions. Open peril policies tend to contain long lists of exclusions. However, they tend to offer more comprehensive coverage than do named peril policies. Open peril policies can also be referred to as "All Risk" or "Special Form" policies. In this case, the burden of proof is on the Lake of the Ozarks insurance company to show that coverage is excluded.

Examples of Perils

"Perils" is the insurance industries name for what's covered in a property policy. In other words, they could be described as causes of loss. Below are some common examples of perils you may see listed in your homeowners policy:

Fire or Lightning

Windstorm or Hail

Earthquake

Flood

Explosion

Riot or Civil Commotion

Smoke

Vandalism or Malicious Mischief

Theft

When looking over your current insurance policy, it is important that you understand if the policy is stating what is included or excluded. For help with your Lake of the Ozarks homeowners insurance, contact Insure the Lake at 573-348-2794.

About the Author:Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.